Question: Problem 5-19 You manage an equity fund with an expected risk premium of 10.2% and a standard deviation of 16%. The rate on Treasury bills

Problem 5-19 You manage an equity fund with an expected risk

Problem 5-19 You manage an equity fund with an expected risk premium of 10.2% and a standard deviation of 16%. The rate on Treasury bills is 4%. Your client chooses to invest $40,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund? (Round your answer to 4 decimal places.) Reward-to-volatility ratio

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